March 29, 2024 • 42 mins
Topic of the Week (3/29/24):
Recounting some of the official reporting from the Key Bridge allision and reviewing OSRA 2.0 passed House bill...
https://gcaptain.com/these-are-the-ships-stuck-behind-the-baltimore-key-bridge/
https://gcaptain.com/ntsb-timeline-reveals-crucial-minutes-leading-up-to-baltimore-bridge-strike/
https://www.joc.com/article/baltimore-port-closure-presents-unexpected-challenges-mid-atlantic-trucking_20240328.html
The Maritime Professorᵀᴹ presents By Land and By Sea - an attorney breaking down the week in supply chain
with Lauren Beagen (Founder of The Maritime Professorᵀᴹ and Squall Strategiesᵀᴹ)
Let's dive in...
1 - OSRA 2.0 passed the U.S. House of Representatives, it now heads to the United States Senate's Committee on Commerce, Science, and Transportation
Bill Text:
https://www.congress.gov/bill/118th-congress/house-bill/1836/text
JOC.com article:
https://www.joc.com/article/osra-20-bill-targets-china-leaves-shipping-antitrust-exemption-untouched_20240328.html
2 - CMA CGM is introducing a new loyalty program called Sea Reward
JOC.com article:
https://www.joc.com/article/cma-cgm-amps-retention-spot-shippers-loyalty-program_20240314.html
3 - Ship allision in the Great Lakes with a junction light
gCaptain article:
https://gcaptain.com/us-flag-laker-suffers-marine-casualty-in-michigan/
-------------------------------
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
oh, oh, oh, oh oh.
I've got soul coming through,flying free.
Skies are blue, all the ways itmakes a room.
I've got soul coming throughwon't stop in the piece and on
(00:24):
top of the world, can't walk tothe beat.
When you see me coming, makesome room.
Everywhere I go, I'm in thespotlight.
This is a good life I'm livingbold.
This is what it looks like Onthe 16 tips of the world.
(00:55):
So it was a somber week for allmodes of the transportation
industry.
As I'm sure you're aware, thisweek there was an elision with
the Francis Scott Key Bridge inBaltimore, maryland.
Now I'm not going to use thistime today to speculate on what
happened.
That's for the investigatorsand I'm going to wait for the
report there.
But I do have some thoughts onwhat you can maybe do and what
(01:17):
I'm going to be paying attentionto now that the search and
rescue efforts have concluded.
That was the most importantright.
So now I think we're startingto move toward economic
considerations, and so I thinkit's appropriate to have some of
these conversations.
But also, in the past week ortwo, we've had some pretty
interesting stuff happengenerally in the global ocean
(01:37):
shipping world, and I think wegot to talk about it.
Did you know that ASRA 2.0actually passed the house last
week?
We're going to talk about that.
We're going to talk about abunch more in the top three
stories of the week.
So stick around.
Hi, welcome to, by Land and bySea, an attorney breaking down
the weekend supply chainpresented by the Maritime
(01:57):
Professor.
Me.
I'm Lauren Began, founder ofMaritime Professor and Squall
Strategies, and I'm yourfavorite maritime attorney.
Join me every week as we walkthrough both ocean transport and
surface transport topics in thewild world of supply chain.
As always, the guidance here isgeneral and for educational
purposes only.
It should not be construed tobe legal advice and there is no
(02:19):
attorney-client privilegecreated by this video or this
podcast.
If you need an attorney,contact an attorney.
So before we get into thediscussion of the day, let's go
through my top three stories ofthe week.
All right, story number oneLike I said, did you know that
Osra 2.0 passed last week?
That's right, on March 21st, theUS House of Representatives
(02:40):
passed Osra 2.0.
But this isn't quite law yet.
Remember, in order for a billto become a law, both the House
and the Senate, and the Senatehave to pass the bill, and then
it goes to the president's deskwhere he can either sign it or
veto it.
So we're really only at maybestep one here.
(03:01):
I mean these are big steps,right.
I mean the House passing is abig step.
And actually look, osra well,osra 22, osra 2022, so the one
from June 16, 2022, had multipleHouse votes before the Senate
actually took it up.
So here we are ASRA 2.0.
(03:23):
I think there's too many twosinvolved here, right?
Asra 2.0 has passed the house.
And a little note and this iskind of why I'm pa otherwise, in
the Shipping Act and in theglobal ocean shipping world as
it relates to the FMC and the USside of things.
So all that to say OSRA 98 waskind of OSRA 1.0.
(03:59):
Osra 22,.
So OSRA of 2022 was probably2.0.
So, like, let's keep the twosthere and then this ASRA is
probably 3.0 for being exactabout it.
But that might just get tooconfusing, so let's just call it
what it is the Ocean ShippingReform Implementation Act of
(04:21):
2023.
There's a million names here,right?
So this is ASRA 2.0.
We'll just stick to that, eventhough we know, even though you
listeners know, that it's alittle incorrect.
So this bill HR 1836, so theOcean Shipping Reform
Implementation Act of 2023, soOSRA 2.0, it was actually first
introduced May 23rd 2023.
So we talked about it last ayear ago, right 23rd 2023.
(04:48):
So we talked about it last ayear ago, right Last spring,
summer.
It includes some interestingcomponents.
So there's a section creating amechanism for complaints
against shipping exchanges to befiled with the FMC concerning
incidents of market manipulationor other anti-competitive
practices by shipping exchanges.
So this kind of bringsattention to shipping exchanges.
That was also included in ASRA22.
But here we go.
It's a section creating amechanism for the complaints.
So if you want to file acomplaint against a shipping
(05:10):
exchange and doing it from thisanti-competitive, monopolistic
lens, which is really what theFMC mostly does, right.
There's also the creation of anational port advisory committee
.
So we've been waiting on thisone.
Again, this is not law, this isjust the first step.
This is only past the House,but we've been waiting on the
Port Advisory Committee and theOcean Carrier Advisory Committee
(05:32):
Since I mean, really,commissioner Dye recommended
this and I believe it wasfact-finding 29.
So this OSRA 2.0 that passedthe House only passed the House
calls for the creation theactual now let's rubber meets
the road creation of theNational Port Advisory Committee
and it also calls for thecreation of the National Ocean
Carrier Advisory Committee.
(05:53):
So these would both be similarto the National Shipping
Advisory Committee, shipperAdvisory Committee that we
currently have and SAC that theFMC already has.
Right, it's already the FederalAdvisory Committee that's
advising the FMC.
We've covered theirrecommendations a few times here
.
I think that they are doing aphenomenal job.
They're moving ahead, they'regoing into recommendations,
(06:14):
they're tackling some toughissues.
I mean, they're still anadvisory committee, right, so
their recommendations don'tnecessarily turn into anything,
but that's the sign of a goodrelationship between the Federal
Advisory Committee and thefederal agency that they're
advising is.
The FMC has certainly taken upsome of their suggestions, or at
least in the FMC's website,they respond to the
(06:37):
recommendations, which I meanthat's great.
I love that because it showsvisibility into the process and
visibility that the FMC ispaying attention if they are
listening to the advisorycommittee.
So we have currently NSAC, theNational Shipper Advisory
Committee.
Osra 2.0 is calling for theNational Ocean Carrier Advisory
Committee and calling for theNational Port Advisory Committee
(06:57):
, which those would both begreat.
They are also, um, yeah, thisone's.
So let me take a minute there.
So this one's interesting umbecause it also is directing the
fmc to undertake a rulemakingfor data standards for maritime
freight logistics.
So let's take a minute here onthis one um.
(07:18):
And, by the way, this isn't anexhaustive list of what is
proposed in asra 2.0 um, but I'mkind of just highlighting a few
of the things that I think arepretty interesting.
So the the Federal MaritimeCommission as it says in ASRA
2.0, the Federal MaritimeCommission shall promulgate an
advance notice of proposedrulemaking.
So we've talked about kind ofthe different stages of
rulemaking.
Advance notice of proposedrulemaking the ANPRM is the call
(07:42):
to the industry, a question outto the industry.
Crm is the call to the industry, a question out to the industry
what do you think about this?
And so this House bill issaying FMC, you should do this
first initial step of an advancenotice of proposed rulemaking,
saying we're thinking aboutmaking a rule, we want to know
what the industry thinks aboutit.
So they're calling for theadvance notice on data standards
(08:02):
for maritime freight logisticsand ocean transportation in the
foreign commerce of the UnitedStates.
And it also says during thepublic comment period for the
rule making, the commissionshall consult with the National
Shippers Advisory Board, whichis the National Shipper Advisory
Committee, if we're beingtechnically correct, unless
they're talking about adifferent board, but the
National Super AdvisoryCommittee and the Secretaries of
(08:25):
Transportation, commerce andAgriculture, which I think
that's pretty interesting.
We've seen the House billsbefore have a big connection to
agriculture and Johnson's officeis connected.
You know he's often payingattention to agriculture-related
commodities.
So this calling out saying thatthe rulemaking should also
(08:48):
consult with the secretaries oftransportation, which is good,
commerce, which is great, andagriculture, which I love the
addition there.
So the text of the actual ASRA2.0 in this data standard area
said the rulemaking undersubsection A shall develop a
data standard for the voluntarysharing of appropriate supply
chain data with and it says, acommon lexicon of standard terms
(09:11):
and methods of measurement, amethod to exchange data in real
time amongst relevantstakeholders, appropriate data
protections to ensureconfidentiality of proprietary
business information and, lastly, appropriate cybersecurity
measures to protect data fromunauthorized use.
And it also says that therulemaking should also
(09:32):
incorporate data fromstakeholders to facilitate the
arrival, unloading, loading anddeparture of vessels, cargo
availability and pickupreservation, chassis
availability and other dataelements the commission
considers prudent and in thisrulemaking they should also
consider relevant data standardsused or under development
within the private sector, andwhether to adopt or otherwise
(09:54):
incorporate such standards intothe rule finalized under this
subsection, with priority givento standards that are and they
list a few different things hereare developed in open,
transparent, impartial, balanced, consensus-based processes, are
performance-based,technology-neutral and
vendor-neutral, areinteroperable, allowing for the
(10:16):
exchange and use of data betweendevices and systems, are market
relevant and globallyapplicable, and are
non-duplicative of and coherentwith other relevant standards,
guides, best practices andframeworks already out there.
That's kind of the assume part.
And also allow informationowners to control what
information is actually shared,when information information is
(10:38):
shared, with whom and for whatpurpose.
So they also say that in kindof reviewing this rulemaking,
the commission may enter intoagreement with one or more
appropriate independent entitiesbased in the United States that
operate as voluntary consensusstandard-setting organizations
as defined for purposes ofSection 12D of the National
(10:59):
Technology Transfer andAdvancement Act of 1955.
But they say to develop thedata standard for maritime
freight logistics and oceantransportation in the foreign
commerce of the United States,for the rulemaking under
subsection A and for theprocurement or other relevant
programmatic activitiesconsistent with the requirements
of this section.
So they say there's a grantcriterion too, if the rulemaking
(11:21):
under subsection A is finalized, the Secretary of
Transportation may require acovered port authority to adopt
any data standard issuedpursuant to this section for
relevant operational use cases,as determined by the Secretary.
Okay, I mean, there's a lot ofinformation here, right?
I mean this is prettyinteresting.
And again, this is just thepart that has been approved by
(11:43):
the House.
So this is not a law yet, thisis not an act of rulemaking.
This is not something thatCongress is currently directing
the FMC to do anything with yet,but it's out there, right.
The House has passed this andnow it's with the Senate.
(12:03):
So continuing on with ASRA 2.0here there's also a section on
an independent study and reporton the Shanghai Shipping
Exchange, where it says and I'mgoing to read from the language
again the sector oftransportation shall enter into
an agreement with an appropriateindependent entity described in
subsection D so of thislanguage to conduct a study and
assessment of the businesspractices of the Shanghai
Shipping Exchange, which shouldinclude any anti-competitive
(12:24):
advantages benefiting theShanghai Shipping Exchange and
the ability of the Ministry ofTransport of the People's
Republic of China and theShanghai Shipping Exchange to
manipulate container freightmarkets, freight markets.
So this is Congress and we'veseen this before and we've
certainly heard language.
But this is the House billsaying that they're kind of
worried about.
Well, that's what I'm readinginto it.
(12:45):
They're a little bit worriedabout China's impact or effect
or manipulation, as the languagesuggests here on container
freight market.
So continuing on.
It says the study andassessment required under this
subsection shall address thefollowing the influence of the
government of the People'sRepublic of China on the
Shanghai Shipping Exchange.
(13:05):
So how closely is thegovernment related to the
Shanghai Shipping Exchange?
The impact of such businesspractices or influence on
American consumers andbusinesses.
The ability of a shippingexchange registered under the
code and based on the USS toidentify market manipulation as
described in the subsection orany otherwise concerning
practices by the ShanghaiShipping Exchange, and report
(13:28):
such incidents to the FMC andother federal regulators.
Remember, in this rule they'retalking about shipping exchanges
and now having a mechanism forfiling a complaint against
shipping exchanges.
So I mean same name, right?
This is maybe what they'retalking about when they're
talking about the shippingexchanges.
And then they say in any othermatters, the secretary of the
(13:49):
appropriate independent entitythat enters into an agreement
under this section determines tobe appropriate for the purpose
of the study.
So it's a study.
They're just saying they want astudy reviewed.
And there's also a section inthis ASRA 2.0 that, like I said,
is only passed in the House, isnot law yet, that there's a
prohibition on the use oflodging.
There's been a big push forthis anyways.
(14:11):
That's some technology out ofChina, so that's also in here a
prohibition on the use oflodging.
So remember, this is not lawand I can't say that enough, and
I tried to say it sprinkledthroughout.
So, in case you're only hearingpart of this, this is not law.
This has only been passed outof the house and has not been
referred and has now excuse me,has now been referred to the
(14:34):
Senate, senate committee oncommerce, science and
transportation, but not much hashappened there yet.
So this only happened.
What eight days ago, march 21st, that this passed out of the
House?
We'll see if the Senate doesanything with it.
Like I said, when ASRA 22 wentinto, when finally went through,
initially there were a fewvotes on the House bills with
(14:57):
different versions.
So this is ASRA 2.0 movingforward, passing out of the
house.
We'll see, but this isinteresting.
I think that this is reallyinteresting to see what the
house presents as the otherthings that they wanted done
that.
Like I said, this is the OceanShipping Reform Implementation
(15:17):
Act of 2022.
So they've said that this waskind of inclusive of some of the
things that they felt ASRA 22didn't cover, and now this is
the things that they would liketo see added.
That's just story number one.
Let's keep going.
Story number two All right.
Story number two is prettyinteresting.
Today it was reported by JOCthat CMACGM is introducing a new
(15:40):
loyalty program called C-Reward, reportedly similar, as JOC
says, to those used by hotelchains and airlines to drive
loyalty by providing benefitssuch as rate discounts and
priority access for frequentcustomers.
I think this is prettyinteresting.
I'm still kind of thinkingabout the application and all of
that, but so Eric Johnson wrotethis article for JOC and in
(16:04):
there he says the C rewardprogram has four status tiers,
similar to airline programs,with more use translating to
higher tiers.
The benefits cited in astatement Wednesday.
From when the statement wasreleased, said program
participants could use earnednautical miles to pay part of
(16:25):
their freight invoices.
That's interesting, too right.
You could accumulate nauticalmiles or accumulate points to
pay for part of your freightinvoices.
I mean, if you're watching melive, you can see my head kind
of turning on this like how isthis going to work?
So I'm going to I'm going tokeep paying attention to this.
(16:45):
I think that this isinteresting.
I like new ideas.
I'm going to keep watching this.
So they also quote.
Eric also quotes in here a quotefrom Oliver Navoy, cma, CGM's
group executive, vp of shipping.
He said in Eric's article thesecustomers who rely on the spot
market tend to go from carrierto carrier for very little money
(17:07):
.
If we can push dedicatedproposals to them, it's not just
a lower rate or points earned,but the feeling that we can do
something more for them.
So this is just a snippet, thisis just a highlight.
This is just looking at Eric'sarticle.
I encourage you to go look atEric's article too.
I always link all of thearticles that I call out or
highlight in my show notes, butalso go look at CMACGM's
(17:29):
notification on this.
This is really interestingstuff and I encourage you to
look further into it.
All right, story number three.
So story number three is justkind of a quick little thing.
I just wanted to highlight thatactually, ship elisions and
ship collisions aren't souncommon as you might expect,
though, certainly the Key BridgeElysian will remain historic
right and its magnitude ofdestruction, its loss of life
(17:52):
and its overall financialdamages, but on a smaller scale.
G Captain reported this weekthat there was also an elision
on the Great Lakes with a USflagged Laker.
So just a little side notevessels that traverse only
inside the Great Lakes areactually called Lakers, and, as
I understand it, vessels thattraverse the Great Lakes but
then also go out to the oceanare called Salties.
(18:12):
So now you know just littlelittle lingo things, little
lingo things.
As G Captain reports, a USflagged cargo vessel, the
American Mariner, collided withthe Mud Lake Junction Light in
Muniscong Lake in Michiganearlier today.
And, as you, I don't know ifI've actually mentioned this
much, but I'm from Michiganoriginally.
So I don't know if you everhear the northern accent, but I
(18:36):
like to see a little story onMichigan anyways accent, but I
like to see a little story onMichigan anyways.
But this was an elision withthe mud lake junction light.
So the US Coast Guard and I'mjust reading from the G Captain
report here, the US Coast Guardreported that the 714 foot bulk
cargo ship experienced a marinecasualty that led to the
incident around 1 am thismorning.
The ship was not transportingany cargo, so there's no
(18:58):
reported injuries from this.
And, like I said, I just addedthis to just say you know, some
smaller scale elisions andcollisions happen as you start
to hear some of the reportingout of the ship vessel.
You know, I've even heard somepeople say, well, why weren't
they doing more?
It happens sometimes.
Right, nobody could haveforecasted what was happening
(19:21):
with the Key Bridge.
But I only point this out tosay there was another religion.
Sometimes these things happenand I'm pausing because I want
to be careful with how I reporton anything about the Key Bridge
, because I don't want to beanywhere near report on anything
about the Key Bridge, because Idon't want to be anywhere near,
(19:43):
I don't want to lessen it.
It's a huge deal.
Well, let's get into it.
So let's get into the meat andpotatoes of the day.
So I posted on LinkedIn earlierthis week that I was hesitant to
say anything.
I certainly didn't want to gumup and just add noise to some of
the conversations that werehappening, especially
immediately.
Right, I was watching with, Imean, like I said, grave concern
(20:07):
this week.
I mean, every life lost is atragedy.
The maritime industry trulyjoins the surface transportation
industry in grieving the livesthat were lost, of those workers
that were up there.
I said this in the LinkedInpost these are dangerous
industries, these are verydangerous, both surface
transportation and maritimeocean transportation.
(20:27):
These are dangerous industries,but nobody not one person, I
don't think could have even well, I don't know, this is not one
of the many dangers that anyonewould have truly anticipated
could happen.
Right, these industries andtheir collective efforts are
really the backbone of Americaand the entire world.
(20:53):
When the conversation was aroundthe search and rescue, I
applaud those who showedrestraint and made sure to stay
focused on the search and rescueefforts.
It was about a week or, excuseme, it was about a day of doing
that, and I believe it was afterthe sunset on that first day
that the Coast Guard said thatit was going to be a recovery
(21:18):
and not necessarily a search andrescue anymore, and that's when
the conversation appropriatelystarted to switch over to the
economic side.
I think everybody felt a callto action, but I also appreciate
when people were showingrestraint in that call to action
because, I don't know, myfeeling was that we needed to
(21:38):
clear the decks, we needed toprovide space for only the
important voices to exchangeinformation, talking about the
(22:01):
actual operations that need tohappen.
Let's start talking about someof the supply chain disruptions
or maybe modifications that arehappening out there, and I want
to stay focused on truth and Iwant to stay focused on the
message and I want to stayfocused on reports that are
coming out.
So I'm not going to bespeculating.
Like I said at the outset,we're going to talk a little bit
about the Keybridge Elysian bythe MV Dolly, but I'm going to
be speculating, like I said atthe outset, we're going to talk
(22:21):
a little bit about the KeybridgeElysian by the MV Dolly, but
I'm going to leave all of thereporting of what happened to
the investigators and I'll justbe reporting what the
investigators are releasing andsome of the really good
reporting that's going on outthere that is absent of the
speculation and really justrooted in true fact.
I think that's important on outthere, that is absent of the
speculation and really justrooted in true fact.
I think that's importantanytime there's an emergency and
(22:45):
this is no different, right?
So let's talk about some ofthat and I'm also going to give
some perspective, right, or somethoughts that I have on what
this means and what some of thenext steps that anybody can
start thinking about, or some ofthe things that I'm thinking
about.
So, according to a G Captainarticle by Mike Shuler, he
reported the NationalTransportation Safety Board.
(23:06):
So NTSB released some initialinformation regarding the
timeline of the vessel and, likeI said, I'm staying focused on
things that have been releasedthat are rooted in fact, and so
I think that the timeline isactually pretty interesting.
So, from the article from GCaptain Mike Shuler, the NTSB
released the timeline afterboarding the ship on Wednesday
(23:27):
to gather perishable factualevidence.
The agency also revealed 56containers with hazardous
materials, some of which werebreached.
Now I think that that'sinteresting because, as we start
drilling down into some ofwhich were breached.
Now, I think that that'sinteresting because, as we start
drilling down into some of themore focused pieces, there were
some containers that it lookedlike fell off and they're saying
(23:48):
look, 56 containers were onboard with hazardous materials,
some of which were breached here.
So it said that the Coast Guardrecovered approximately six
hours of voyage data recorderVDR data from the DALI on the
morning of the accident andprovided it to the NTSB.
The data covers the period ofmidnight to 6 am on March 26,
2024.
The NTSB and this is I'mreading, like I said, from the
(24:11):
article the NTSB was continuingto obtain the remaining 30 days
of the data that the VDR isrequired to record.
So let's skip forward to thetimeline that the NTSB put out.
So it's saying from the VDRrecorded the ship's departure
from the Seagirt Marine Terminalat approximately midnight.
(24:31):
1239, recorded the ship'stransit outbound in the Fort
McHenry Channel and the strikingof the Francis Scott Key Bridge
.
By 107 Eastern.
The ship entered the channel by124 Eastern.
The ship was underway on a trueheading of approximately 141
(24:51):
degrees in the Fort McHenryChannel at an indicated speed
over ground of approximatelyeight knots, which they're
saying equates to about ninemiles per hour.
So at 1.24.59, a second before1.25, numerous oral alarms were
recorded on the ship's bridgeaudio.
Around the same time VDR shipsystem data ceased recording.
(25:14):
However, the VDR audiocontinued to be recording using
the VDR's redundant power source.
So that's interesting.
It's just an interesting piecethat they're including there.
So that's at 1.24.59.
Around 1.26.02, so about aminute later, a minute and three
seconds later, the VDR resumedrecording ship system data.
(25:35):
During this time there weresteering commands and rudder
orders on the VDR audio.
Around 1.26 and 39 seconds, theship's pilot made a general VHF
radio call for tugs in thevicinity of the Dolly Maryland
Transportation Authority.
Mdta data from around this timeindicated the pilot association
(25:58):
dispatcher phoned the MTDA dutyofficer regarding the blackout.
So at 1.26 and 39 seconds, thepilot association dispatcher
phoned the transportationauthority duty officer regarding
the blackout, which was, Ithink, one of the smartest
(26:18):
things that could have happened,because this is connecting the
maritime transportation piece tothe surface transportation
piece and that's kind of whatthis whole podcast is based on
is bridging the silos betweenmaritimes transportation and
surface transportation and thereare some notable disconnects,
(26:41):
but in that moment to me itseems like they were connecting
those dots.
And so the surfacetransportation side I mean of
course the bridge, right, ofcourse the bridge has surface
transportation implications, butthat moment started the chain
of the surface transportationside to secure and protect that
bridge.
So 126, 39 seconds, so 127.04,so about 40 seconds.
(27:06):
No, what's that?
Yeah, 25 seconds later sorrymath, 25 seconds or so later,
the pilot commanded the dally todrop the port anchor and issued
additional steering commands.
So at this point right, theydropped the port anchor.
We've seen that from some ofthe helicopter footage and, if
you, if you listen to Dr SalMcCrogliano, he talked about
that too.
From the initial helicopterfootage that he saw, the port
(27:28):
anchor was a stern or waspointing a stern anchor was a
stern or was pointing a stern.
Around 1.27 and 25 seconds thepilot issued a radio call over
the VHF radio and reported thatDolly had lost all power
approaching the key bridgeAround.
This time MDTA data shows thefollowing occurred that the
Maryland TransportationAuthority duty officer radios
(27:49):
two units already, one on eachside of the bridge, to close the
bridge.
That's the piece that savedlives.
There were duty officersalready around and there was
actually some released audio soyou can listen to the exchange.
That wasn't included in part ofthis NTSB reporting or release,
but they said that at 127.25,.
(28:10):
So at 126.39 is when they'resaying that the pilot
association dispatcher phonedover to the Maryland
Transportation Authority andabout a minute later the
Maryland TransportationAuthority said that they were
radioing to two officers to shutdown the bridge a minute later
(28:32):
and then all lanes are shut downby MTDA, mdta.
So if you go to this articleand, like I said, I'm putting
all the articles in the shownotes, like I always do, but
they have the audio of thedispatch to the two patrol units
there too.
It's really interesting.
It wasn't included in the NTSBtimeline but it is there in the
article.
It wasn't included in the NTSBtimeline, but it is there in the
article.
(28:53):
So around 1.29, the ship's speedover ground was recorded at
just under seven knots, eightmiles per hour.
So they had slowed down aboutone mile per hour.
But this was a huge vessel.
So from this moment untilapproximately 1.29.33, vr audio
recorded sounds consistent withthe collision, with, I should
say, elision with the Key Bridge.
(29:13):
Additionally, around this timeMaryland Transportation
Authority dash camera shows thebridge lights extinguishing.
So 1-29.
So 1-27-25 is when they wereable to shut down the bridge.
According to this NTSB timeline, they did that with about 95
(29:34):
seconds to spare.
Well, and maybe even twominutes to spare, because from
this moment until approximately1-29-33.
So I mean 90 seconds to sparereally is what we're looking at
here, that they were able to soquickly go from maritime to
surface transportation, shutdown that bridge.
(29:56):
At 1.29.39, the pilot reportedthat the key bridge was down
over VHF to the US Coast Guard.
So this is from the NTSB reportof the timeline.
Like I said, I don't want to gotoo far away from what the truth
is here and so that's what isbeing reported as the truth.
That's the timeline.
(30:17):
If you do pull up the article,like I said, there is audio from
dispatch discussing holding oftraffic and at one point it
sounds like one of the policeofficers who was stopping the
traffic was then going to go upand retrieve the workers and
before he was able to do so thebridge collapsed and, like I
said, that was in the dispatchaudio that the article includes.
So what I want to say on thisis, in the few precious minutes
(30:43):
I mean really seconds that thepolice officers had, they truly
saved untold number of lives bystopping traffic on that bridge.
It was the middle of the night,it was 1.30 in the morning,
essentially, but how quicklyword got from the bridge of the
vessel to the police officers tostop that bridge, stop all
traffic on the bridge.
(31:04):
The connection between maritimetraffic and the surface
transportation, vehiculartraffic I mean that is
phenomenally fast, that is great, and I really, really think
that all regional areas that arehaving those conversations this
week about vulnerabilities intheir own critical
(31:26):
infrastructure should be reallyreviewing how quickly can
maritime conversations translateinto surface transportations or
surface conversations?
Because the fact that thishappened in I mean right, it's
from walking through itcollectively just now about 90
seconds is mind-blowing.
(31:47):
So love to see it, love to seethat.
That's how fast that happened.
And just add, added to yourconversation.
Right, this is not legal advice, this is just kind of
responding to, like I said, thetruth that we see here.
That's been kind of a questionon my mind is like what are the
(32:14):
vessels that actually nowindefinitely can't get out until
we kind of move the and securethe channel so that it can open
up again?
So in this article Mike Shuler'sarticle from G Captain, he says
, according to the Department ofTransportation, there are three
bolt carriers, two generalcargo ships, one vehicle carrier
, one tanker and four readyreserve force vessels.
And now the container shipDolly is also back there and
(32:38):
what I've been hearing is thatthey're going to be, once they
are able to, they're going to bemoving the Dolly back over to
berth and doing theirinvestigation there.
So what Mike Shuler says inthis G Captain article is that
they're using AIS data and thepublic ship databases, they've
been able to locate details oneach of those vessels.
So the three bulk carriersinclude the Liberian, flagged JY
(33:01):
River, owned by JADInternational Ship and managed
by a Hong Kong company.
There's a Thailand flagged,that is also back there.
There's a Portuguese flagged uhvessel.
That is also.
So those three are the threebolt carriers.
(33:22):
Um, there's a vehicle carrier,the Swedish flag, carmen um, of
Wallenius Marine.
There's a general cargo ship.
There's a French flag flaggedvessel Um.
There's a Panamanian flaggedvessel and the tanker, the
Martian, the Marshall islands,flagged uh vessel, um.
And then there's three Maradready reserve force vessels.
(33:44):
We haven't talked a lot, we'renot going to veer too much into
ready reserve force vessels uhright now, but this um in
general needs to be built up,but there's three that are stuck
back there.
So the Cape Washington, a Rorovessel, the Gary Gordon, a Roro
vessel.
The SS Antares, a fast seal ofvehicle cargo ship.
(34:05):
And the SS Denebola, a fastseal of vehicle cargo ship.
So, as Mike explains in in thearticle and I'm just going to
read what he put here the redreserve force, rrf, is a subset
of vessels within meritsnational defense reserve fleet
and DRF that provides surge seallift capability to the
(34:25):
department of defense.
The ships are owned, crude andmaintained by merit but come
under the control of themilitary seal of command once
activated.
And he also in the reports thatthere's countless tugs and
smaller vessels back there.
I mean, they're stuck right, sothere's no possibility for
departure because there's no wayto get through.
And even if there was, it's toounsafe to do so, so they're
(34:49):
going to be stuck there for alittle bit.
But it was interesting to seethe reporting of the vessels,
their names and their purpose.
So I also want to call yourattention to an article out of
JOC by William Cassidy, and hediscusses the cargo diversion
and trucking troubles that maybe coming from this.
And while I want to be carefulhere, because I do not want to
(35:11):
predict doom and gloom, becauseI don't think that that's
something that will be happeninghere, I do think that it's
important to kind of talk aboutmaybe some of the cargo
diversion that might behappening and some of the
knock-on effects that you shouldjust pay attention to.
I don't want to say thatthere's doom and gloom coming
and I don't want to imply thatthere's doom and gloom coming,
but there are some challengesthat I think are now going to be
(35:33):
presented that need to be builtinto everybody's contingency
plans and everybody's justlarger thinking on all of this.
So the surrounding ports of NewYork, new Jersey and Norfolk
both ports I've been reading andhearing um have been assisting
with the cargo diversion ofvessels and their containers.
Um and, like I said, there'sgoing to probably be some
knock-on effects here that aregoing to need to be managed.
(35:53):
So this is not sounding analarm, just indicating that
there's some nimbleness of thesupply chain that's going to be
put on display and some thingsthat you should be paying
attention to.
So in this article out of JOC byWilliam Cassidy, he does an
interview with Ken Kelleway, ceoof RoadOne Intermodal Logistics
, and Ken says a lot of peopletake drayage capacity for
(36:14):
granted and that's an importantpiece.
He said they think it'sfungible from one port to
another, but it's not.
And so that was one of mythoughts was, even though the
ports are likely able to handlewhat's happening with this cargo
diversion right, I mean theywere able to handle some surging
that happened during COVID andcertainly we don't have the
(36:34):
global system disruptions thatwe have.
This is East Coast Limited.
It's not just about the portright, it's all about connecting
the pieces and it's about thedrayage trucking providers that
are moving those containers outof the port and moving them over
to the warehouse.
And then you get to thewarehouse discussion Is there
enough capacity in the warehouse?
(36:55):
Are those warehouses dedicatedand able to handle the commodity
, the type of cargo that isbeing offloaded?
Or the Port of Baltimore hasappropriately and importantly
mentioned and put out there thatthey're still open, even though
they don't have an ingressegress for their maritime side
of there, that they're stillopen even though they don't have
an ingress egress for theirmaritime side of things, they're
(37:16):
still open.
And so it's been reallyencouraging to see a lot of
attempts to bring the cargo backto Port of Baltimore, one
because of the kind of show ofstrength and show of support for
the Port of Baltimore, but thenalso I think that it's showing
(37:37):
that Baltimore is still open andthis Port of Baltimore
specifically was created.
Some of these warehousing unitsare created for the specific
commodities that Baltimore isgood at, and so what Ken
Kellaway of Road 1 IntermodalLogistics continues on saying is
the average dray out ofBaltimore is probably 50 to 60
(38:00):
miles, which dray is theconnector of port to where it
needs to go, but if you'redraying from New York to that
same location you could add 100miles, from Norfolk, another 150
.
So he says that these are justthings that need to be
considered and I've heard bothof DRAGE trucking providers and
also of rail being a possibilityinto the Port of Baltimore port
(38:25):
system.
So, as the article continues onand says, east Coast ports have
had enough capacity to handlediverted cargo, but whether
truck capacity is available oncethat cargo is offloaded is
another matter and that's kindof the point that I was making
at the beginning here.
Another thing that is just goodgeneral practice right to
review your shipping contracts,whatever that looks like for you
(38:48):
and again, this is not legaladvice, but this is not legal
advice directly related to yourmatter, but this is certainly
just good best practices to makesure that you're up on all of
your own terms and make surethat you're prepared.
I don't anticipate a ton ofcongestion from this cargo
diversion right and I think thatit's going to be well-managed
and quickly managed, because alot of people sprang into action
(39:10):
to make sure that we weren'tgoing to have much of a
large-scale economic disruptionhere.
But slowdowns in the system cansometimes mean detention or
demurrage may rear their heads,and we talk about detention
demurrage a lot here.
One thing that I want to pointout is the final rule out of the
FMC, the detention demurragefinal rule, doesn't go into
(39:34):
effect until May 28th.
We are now March 29th, whichmeans the D&D final rule from
the FMC is not effective yet.
So some of the things that arebecoming part of the
requirements are not yetnecessarily requirements, and so
just be aware of that.
Not legal advice directlyrelated to your matter, but just
(39:56):
so that you don't forget, eventhough the final text has been
released, it is not effectiveyet.
But I also want you to just belooking at detention to merge.
I want you to be understandingwhat your free time timelines
look like for you If appropriate.
I mean, maybe you could findout if free time can be extended
, or there's just my point beingright not legal advice, but
(40:24):
just start thinking about all ofyour terms and understanding it
, because it'll make you moreprepared, obviously, but it'll
also make you more prepared tobe nimble if required If things
do start to gum up or if thereare some problems of moving the
cargo out of these new areas.
So just know the parametersthat you're working with, not
legal advice, just general goodpractices, just general thoughts
(40:46):
, and there's going to be a lotthat's going to be unfolding in
the next few weeks.
I mean, certainly there's beena lot that's unfolded in the
past few days, but this issomething that it's important to
just be aware.
Keep your eyes open, keeppaying attention here and, as
always, the guidance here isgeneral and for educational
(41:07):
purposes.
I'm going to continue to bewatching all things ocean
surface, anything related to theglobal ocean shipping
environment in the world.
It should not be contributinglegal advice, though directly
related to your matter.
If you need an attorney,contact an attorney, but if you
do have specific legal questions, feel free to reach out to me
at my legal company, squallStrategies.
Otherwise, that's it for today.
(41:28):
For the non-legal questions,e-learning and general industry
information and insight, comefind me at the Maritime
Professor.
If you like these videos, letme know, comment, like and share
.
If you want to listen to theseepisodes on demand or if you
missed any previous episodes,check out the podcast by Land
and by Sea.
If you prefer to see the video,they live on my YouTube page by
Land and by Sea, presented bythe Maritime Professor, and,
(41:49):
while you're at it, check outthe website maritimeprofessorcom
.
So until next week.
This is Lauren Began, maritimeProfessor, and you've just
listened to.
By Land and by Sea.
See you next time.
oh, oh, oh, oh oh.
I've got soul coming through,flying free.
Skies are blue, all the ways itmakes a room.
I've got soul coming throughwon't stop in the piece and on
(00:24):
top of the world, can't walk tothe beat.
When you see me coming, makesome room.
Everywhere I go, I'm in thespotlight.
This is a good life I'm livingbold.
This is what it looks like Onthe 16 tips of the world.
(00:55):
So it was a somber week for allmodes of the transportation
industry.
As I'm sure you're aware, thisweek there was an elision with
the Francis Scott Key Bridge inBaltimore, maryland.
Now I'm not going to use thistime today to speculate on what
happened.
That's for the investigatorsand I'm going to wait for the
report there.
But I do have some thoughts onwhat you can maybe do and what
(01:17):
I'm going to be paying attentionto now that the search and
rescue efforts have concluded.
That was the most importantright.
So now I think we're startingto move toward economic
considerations, and so I thinkit's appropriate to have some of
these conversations.
But also, in the past week ortwo, we've had some pretty
interesting stuff happengenerally in the global ocean
(01:37):
shipping world, and I think wegot to talk about it.
Did you know that ASRA 2.0actually passed the house last
week?
We're going to talk about that.
We're going to talk about abunch more in the top three
stories of the week.
So stick around.
Hi, welcome to, by Land and bySea, an attorney breaking down
the weekend supply chainpresented by the Maritime
(01:57):
Professor.
Me.
I'm Lauren Began, founder ofMaritime Professor and Squall
Strategies, and I'm yourfavorite maritime attorney.
Join me every week as we walkthrough both ocean transport and
surface transport topics in thewild world of supply chain.
As always, the guidance here isgeneral and for educational
purposes only.
It should not be construed tobe legal advice and there is no
(02:19):
attorney-client privilegecreated by this video or this
podcast.
If you need an attorney,contact an attorney.
So before we get into thediscussion of the day, let's go
through my top three stories ofthe week.
All right, story number oneLike I said, did you know that
Osra 2.0 passed last week?
That's right, on March 21st, theUS House of Representatives
(02:40):
passed Osra 2.0.
But this isn't quite law yet.
Remember, in order for a billto become a law, both the House
and the Senate, and the Senatehave to pass the bill, and then
it goes to the president's deskwhere he can either sign it or
veto it.
So we're really only at maybestep one here.
(03:01):
I mean these are big steps,right.
I mean the House passing is abig step.
And actually look, osra well,osra 22, osra 2022, so the one
from June 16, 2022, had multipleHouse votes before the Senate
actually took it up.
So here we are ASRA 2.0.
(03:23):
I think there's too many twosinvolved here, right?
Asra 2.0 has passed the house.
And a little note and this iskind of why I'm pa otherwise, in
the Shipping Act and in theglobal ocean shipping world as
it relates to the FMC and the USside of things.
So all that to say OSRA 98 waskind of OSRA 1.0.
(03:59):
Osra 22,.
So OSRA of 2022 was probably2.0.
So, like, let's keep the twosthere and then this ASRA is
probably 3.0 for being exactabout it.
But that might just get tooconfusing, so let's just call it
what it is the Ocean ShippingReform Implementation Act of
(04:21):
2023.
There's a million names here,right?
So this is ASRA 2.0.
We'll just stick to that, eventhough we know, even though you
listeners know, that it's alittle incorrect.
So this bill HR 1836, so theOcean Shipping Reform
Implementation Act of 2023, soOSRA 2.0, it was actually first
introduced May 23rd 2023.
So we talked about it last ayear ago, right 23rd 2023.
(04:48):
So we talked about it last ayear ago, right Last spring,
summer.
It includes some interestingcomponents.
So there's a section creating amechanism for complaints
against shipping exchanges to befiled with the FMC concerning
incidents of market manipulationor other anti-competitive
practices by shipping exchanges.
So this kind of bringsattention to shipping exchanges.
That was also included in ASRA22.
But here we go.
It's a section creating amechanism for the complaints.
So if you want to file acomplaint against a shipping
(05:10):
exchange and doing it from thisanti-competitive, monopolistic
lens, which is really what theFMC mostly does, right.
There's also the creation of anational port advisory committee
.
So we've been waiting on thisone.
Again, this is not law, this isjust the first step.
This is only past the House,but we've been waiting on the
Port Advisory Committee and theOcean Carrier Advisory Committee
(05:32):
Since I mean, really,commissioner Dye recommended
this and I believe it wasfact-finding 29.
So this OSRA 2.0 that passedthe House only passed the House
calls for the creation theactual now let's rubber meets
the road creation of theNational Port Advisory Committee
and it also calls for thecreation of the National Ocean
Carrier Advisory Committee.
(05:53):
So these would both be similarto the National Shipping
Advisory Committee, shipperAdvisory Committee that we
currently have and SAC that theFMC already has.
Right, it's already the FederalAdvisory Committee that's
advising the FMC.
We've covered theirrecommendations a few times here
.
I think that they are doing aphenomenal job.
They're moving ahead, they'regoing into recommendations,
(06:14):
they're tackling some toughissues.
I mean, they're still anadvisory committee, right, so
their recommendations don'tnecessarily turn into anything,
but that's the sign of a goodrelationship between the Federal
Advisory Committee and thefederal agency that they're
advising is.
The FMC has certainly taken upsome of their suggestions, or at
least in the FMC's website,they respond to the
(06:37):
recommendations, which I meanthat's great.
I love that because it showsvisibility into the process and
visibility that the FMC ispaying attention if they are
listening to the advisorycommittee.
So we have currently NSAC, theNational Shipper Advisory
Committee.
Osra 2.0 is calling for theNational Ocean Carrier Advisory
Committee and calling for theNational Port Advisory Committee
(06:57):
, which those would both begreat.
They are also, um, yeah, thisone's.
So let me take a minute there.
So this one's interesting umbecause it also is directing the
fmc to undertake a rulemakingfor data standards for maritime
freight logistics.
So let's take a minute here onthis one um.
(07:18):
And, by the way, this isn't anexhaustive list of what is
proposed in asra 2.0 um, but I'mkind of just highlighting a few
of the things that I think arepretty interesting.
So the the Federal MaritimeCommission as it says in ASRA
2.0, the Federal MaritimeCommission shall promulgate an
advance notice of proposedrulemaking.
So we've talked about kind ofthe different stages of
rulemaking.
Advance notice of proposedrulemaking the ANPRM is the call
(07:42):
to the industry, a question outto the industry.
Crm is the call to the industry, a question out to the industry
what do you think about this?
And so this House bill issaying FMC, you should do this
first initial step of an advancenotice of proposed rulemaking,
saying we're thinking aboutmaking a rule, we want to know
what the industry thinks aboutit.
So they're calling for theadvance notice on data standards
(08:02):
for maritime freight logisticsand ocean transportation in the
foreign commerce of the UnitedStates.
And it also says during thepublic comment period for the
rule making, the commissionshall consult with the National
Shippers Advisory Board, whichis the National Shipper Advisory
Committee, if we're beingtechnically correct, unless
they're talking about adifferent board, but the
National Super AdvisoryCommittee and the Secretaries of
(08:25):
Transportation, commerce andAgriculture, which I think
that's pretty interesting.
We've seen the House billsbefore have a big connection to
agriculture and Johnson's officeis connected.
You know he's often payingattention to agriculture-related
commodities.
So this calling out saying thatthe rulemaking should also
(08:48):
consult with the secretaries oftransportation, which is good,
commerce, which is great, andagriculture, which I love the
addition there.
So the text of the actual ASRA2.0 in this data standard area
said the rulemaking undersubsection A shall develop a
data standard for the voluntarysharing of appropriate supply
chain data with and it says, acommon lexicon of standard terms
(09:11):
and methods of measurement, amethod to exchange data in real
time amongst relevantstakeholders, appropriate data
protections to ensureconfidentiality of proprietary
business information and, lastly, appropriate cybersecurity
measures to protect data fromunauthorized use.
And it also says that therulemaking should also
(09:32):
incorporate data fromstakeholders to facilitate the
arrival, unloading, loading anddeparture of vessels, cargo
availability and pickupreservation, chassis
availability and other dataelements the commission
considers prudent and in thisrulemaking they should also
consider relevant data standardsused or under development
within the private sector, andwhether to adopt or otherwise
(09:54):
incorporate such standards intothe rule finalized under this
subsection, with priority givento standards that are and they
list a few different things hereare developed in open,
transparent, impartial, balanced, consensus-based processes, are
performance-based,technology-neutral and
vendor-neutral, areinteroperable, allowing for the
(10:16):
exchange and use of data betweendevices and systems, are market
relevant and globallyapplicable, and are
non-duplicative of and coherentwith other relevant standards,
guides, best practices andframeworks already out there.
That's kind of the assume part.
And also allow informationowners to control what
information is actually shared,when information information is
(10:38):
shared, with whom and for whatpurpose.
So they also say that in kindof reviewing this rulemaking,
the commission may enter intoagreement with one or more
appropriate independent entitiesbased in the United States that
operate as voluntary consensusstandard-setting organizations
as defined for purposes ofSection 12D of the National
(10:59):
Technology Transfer andAdvancement Act of 1955.
But they say to develop thedata standard for maritime
freight logistics and oceantransportation in the foreign
commerce of the United States,for the rulemaking under
subsection A and for theprocurement or other relevant
programmatic activitiesconsistent with the requirements
of this section.
So they say there's a grantcriterion too, if the rulemaking
(11:21):
under subsection A is finalized, the Secretary of
Transportation may require acovered port authority to adopt
any data standard issuedpursuant to this section for
relevant operational use cases,as determined by the Secretary.
Okay, I mean, there's a lot ofinformation here, right?
I mean this is prettyinteresting.
And again, this is just thepart that has been approved by
(11:43):
the House.
So this is not a law yet, thisis not an act of rulemaking.
This is not something thatCongress is currently directing
the FMC to do anything with yet,but it's out there, right.
The House has passed this andnow it's with the Senate.
(12:03):
So continuing on with ASRA 2.0here there's also a section on
an independent study and reporton the Shanghai Shipping
Exchange, where it says and I'mgoing to read from the language
again the sector oftransportation shall enter into
an agreement with an appropriateindependent entity described in
subsection D so of thislanguage to conduct a study and
assessment of the businesspractices of the Shanghai
Shipping Exchange, which shouldinclude any anti-competitive
(12:24):
advantages benefiting theShanghai Shipping Exchange and
the ability of the Ministry ofTransport of the People's
Republic of China and theShanghai Shipping Exchange to
manipulate container freightmarkets, freight markets.
So this is Congress and we'veseen this before and we've
certainly heard language.
But this is the House billsaying that they're kind of
worried about.
Well, that's what I'm readinginto it.
(12:45):
They're a little bit worriedabout China's impact or effect
or manipulation, as the languagesuggests here on container
freight market.
So continuing on.
It says the study andassessment required under this
subsection shall address thefollowing the influence of the
government of the People'sRepublic of China on the
Shanghai Shipping Exchange.
(13:05):
So how closely is thegovernment related to the
Shanghai Shipping Exchange?
The impact of such businesspractices or influence on
American consumers andbusinesses.
The ability of a shippingexchange registered under the
code and based on the USS toidentify market manipulation as
described in the subsection orany otherwise concerning
practices by the ShanghaiShipping Exchange, and report
(13:28):
such incidents to the FMC andother federal regulators.
Remember, in this rule they'retalking about shipping exchanges
and now having a mechanism forfiling a complaint against
shipping exchanges.
So I mean same name, right?
This is maybe what they'retalking about when they're
talking about the shippingexchanges.
And then they say in any othermatters, the secretary of the
(13:49):
appropriate independent entitythat enters into an agreement
under this section determines tobe appropriate for the purpose
of the study.
So it's a study.
They're just saying they want astudy reviewed.
And there's also a section inthis ASRA 2.0 that, like I said,
is only passed in the House, isnot law yet, that there's a
prohibition on the use oflodging.
There's been a big push forthis anyways.
(14:11):
That's some technology out ofChina, so that's also in here a
prohibition on the use oflodging.
So remember, this is not lawand I can't say that enough, and
I tried to say it sprinkledthroughout.
So, in case you're only hearingpart of this, this is not law.
This has only been passed outof the house and has not been
referred and has now excuse me,has now been referred to the
(14:34):
Senate, senate committee oncommerce, science and
transportation, but not much hashappened there yet.
So this only happened.
What eight days ago, march 21st, that this passed out of the
House?
We'll see if the Senate doesanything with it.
Like I said, when ASRA 22 wentinto, when finally went through,
initially there were a fewvotes on the House bills with
(14:57):
different versions.
So this is ASRA 2.0 movingforward, passing out of the
house.
We'll see, but this isinteresting.
I think that this is reallyinteresting to see what the
house presents as the otherthings that they wanted done
that.
Like I said, this is the OceanShipping Reform Implementation
(15:17):
Act of 2022.
So they've said that this waskind of inclusive of some of the
things that they felt ASRA 22didn't cover, and now this is
the things that they would liketo see added.
That's just story number one.
Let's keep going.
Story number two All right.
Story number two is prettyinteresting.
Today it was reported by JOCthat CMACGM is introducing a new
(15:40):
loyalty program called C-Reward, reportedly similar, as JOC
says, to those used by hotelchains and airlines to drive
loyalty by providing benefitssuch as rate discounts and
priority access for frequentcustomers.
I think this is prettyinteresting.
I'm still kind of thinkingabout the application and all of
that, but so Eric Johnson wrotethis article for JOC and in
(16:04):
there he says the C rewardprogram has four status tiers,
similar to airline programs,with more use translating to
higher tiers.
The benefits cited in astatement Wednesday.
From when the statement wasreleased, said program
participants could use earnednautical miles to pay part of
(16:25):
their freight invoices.
That's interesting, too right.
You could accumulate nauticalmiles or accumulate points to
pay for part of your freightinvoices.
I mean, if you're watching melive, you can see my head kind
of turning on this like how isthis going to work?
So I'm going to I'm going tokeep paying attention to this.
(16:45):
I think that this isinteresting.
I like new ideas.
I'm going to keep watching this.
So they also quote.
Eric also quotes in here a quotefrom Oliver Navoy, cma, CGM's
group executive, vp of shipping.
He said in Eric's article thesecustomers who rely on the spot
market tend to go from carrierto carrier for very little money
(17:07):
.
If we can push dedicatedproposals to them, it's not just
a lower rate or points earned,but the feeling that we can do
something more for them.
So this is just a snippet, thisis just a highlight.
This is just looking at Eric'sarticle.
I encourage you to go look atEric's article too.
I always link all of thearticles that I call out or
highlight in my show notes, butalso go look at CMACGM's
(17:29):
notification on this.
This is really interestingstuff and I encourage you to
look further into it.
All right, story number three.
So story number three is justkind of a quick little thing.
I just wanted to highlight thatactually, ship elisions and
ship collisions aren't souncommon as you might expect,
though, certainly the Key BridgeElysian will remain historic
right and its magnitude ofdestruction, its loss of life
(17:52):
and its overall financialdamages, but on a smaller scale.
G Captain reported this weekthat there was also an elision
on the Great Lakes with a USflagged Laker.
So just a little side notevessels that traverse only
inside the Great Lakes areactually called Lakers, and, as
I understand it, vessels thattraverse the Great Lakes but
then also go out to the oceanare called Salties.
(18:12):
So now you know just littlelittle lingo things, little
lingo things.
As G Captain reports, a USflagged cargo vessel, the
American Mariner, collided withthe Mud Lake Junction Light in
Muniscong Lake in Michiganearlier today.
And, as you, I don't know ifI've actually mentioned this
much, but I'm from Michiganoriginally.
So I don't know if you everhear the northern accent, but I
(18:36):
like to see a little story onMichigan anyways accent, but I
like to see a little story onMichigan anyways.
But this was an elision withthe mud lake junction light.
So the US Coast Guard and I'mjust reading from the G Captain
report here, the US Coast Guardreported that the 714 foot bulk
cargo ship experienced a marinecasualty that led to the
incident around 1 am thismorning.
The ship was not transportingany cargo, so there's no
(18:58):
reported injuries from this.
And, like I said, I just addedthis to just say you know, some
smaller scale elisions andcollisions happen as you start
to hear some of the reportingout of the ship vessel.
You know, I've even heard somepeople say, well, why weren't
they doing more?
It happens sometimes.
Right, nobody could haveforecasted what was happening
(19:21):
with the Key Bridge.
But I only point this out tosay there was another religion.
Sometimes these things happenand I'm pausing because I want
to be careful with how I reporton anything about the Key Bridge
, because I don't want to beanywhere near report on anything
about the Key Bridge, because Idon't want to be anywhere near,
(19:43):
I don't want to lessen it.
It's a huge deal.
Well, let's get into it.
So let's get into the meat andpotatoes of the day.
So I posted on LinkedIn earlierthis week that I was hesitant to
say anything.
I certainly didn't want to gumup and just add noise to some of
the conversations that werehappening, especially
immediately.
Right, I was watching with, Imean, like I said, grave concern
(20:07):
this week.
I mean, every life lost is atragedy.
The maritime industry trulyjoins the surface transportation
industry in grieving the livesthat were lost, of those workers
that were up there.
I said this in the LinkedInpost these are dangerous
industries, these are verydangerous, both surface
transportation and maritimeocean transportation.
(20:27):
These are dangerous industries,but nobody not one person, I
don't think could have even well, I don't know, this is not one
of the many dangers that anyonewould have truly anticipated
could happen.
Right, these industries andtheir collective efforts are
really the backbone of Americaand the entire world.
(20:53):
When the conversation was aroundthe search and rescue, I
applaud those who showedrestraint and made sure to stay
focused on the search and rescueefforts.
It was about a week or, excuseme, it was about a day of doing
that, and I believe it was afterthe sunset on that first day
that the Coast Guard said thatit was going to be a recovery
(21:18):
and not necessarily a search andrescue anymore, and that's when
the conversation appropriatelystarted to switch over to the
economic side.
I think everybody felt a callto action, but I also appreciate
when people were showingrestraint in that call to action
because, I don't know, myfeeling was that we needed to
(21:38):
clear the decks, we needed toprovide space for only the
important voices to exchangeinformation, talking about the
(22:01):
actual operations that need tohappen.
Let's start talking about someof the supply chain disruptions
or maybe modifications that arehappening out there, and I want
to stay focused on truth and Iwant to stay focused on the
message and I want to stayfocused on reports that are
coming out.
So I'm not going to bespeculating.
Like I said at the outset,we're going to talk a little bit
about the Keybridge Elysian bythe MV Dolly, but I'm going to
be speculating, like I said atthe outset, we're going to talk
(22:21):
a little bit about the KeybridgeElysian by the MV Dolly, but
I'm going to leave all of thereporting of what happened to
the investigators and I'll justbe reporting what the
investigators are releasing andsome of the really good
reporting that's going on outthere that is absent of the
speculation and really justrooted in true fact.
I think that's important on outthere, that is absent of the
speculation and really justrooted in true fact.
I think that's importantanytime there's an emergency and
(22:45):
this is no different, right?
So let's talk about some ofthat and I'm also going to give
some perspective, right, or somethoughts that I have on what
this means and what some of thenext steps that anybody can
start thinking about, or some ofthe things that I'm thinking
about.
So, according to a G Captainarticle by Mike Shuler, he
reported the NationalTransportation Safety Board.
(23:06):
So NTSB released some initialinformation regarding the
timeline of the vessel and, likeI said, I'm staying focused on
things that have been releasedthat are rooted in fact, and so
I think that the timeline isactually pretty interesting.
So, from the article from GCaptain Mike Shuler, the NTSB
released the timeline afterboarding the ship on Wednesday
(23:27):
to gather perishable factualevidence.
The agency also revealed 56containers with hazardous
materials, some of which werebreached.
Now I think that that'sinteresting because, as we start
drilling down into some ofwhich were breached.
Now, I think that that'sinteresting because, as we start
drilling down into some of themore focused pieces, there were
some containers that it lookedlike fell off and they're saying
(23:48):
look, 56 containers were onboard with hazardous materials,
some of which were breached here.
So it said that the Coast Guardrecovered approximately six
hours of voyage data recorderVDR data from the DALI on the
morning of the accident andprovided it to the NTSB.
The data covers the period ofmidnight to 6 am on March 26,
2024.
The NTSB and this is I'mreading, like I said, from the
(24:11):
article the NTSB was continuingto obtain the remaining 30 days
of the data that the VDR isrequired to record.
So let's skip forward to thetimeline that the NTSB put out.
So it's saying from the VDRrecorded the ship's departure
from the Seagirt Marine Terminalat approximately midnight.
(24:31):
1239, recorded the ship'stransit outbound in the Fort
McHenry Channel and the strikingof the Francis Scott Key Bridge
.
By 107 Eastern.
The ship entered the channel by124 Eastern.
The ship was underway on a trueheading of approximately 141
(24:51):
degrees in the Fort McHenryChannel at an indicated speed
over ground of approximatelyeight knots, which they're
saying equates to about ninemiles per hour.
So at 1.24.59, a second before1.25, numerous oral alarms were
recorded on the ship's bridgeaudio.
Around the same time VDR shipsystem data ceased recording.
(25:14):
However, the VDR audiocontinued to be recording using
the VDR's redundant power source.
So that's interesting.
It's just an interesting piecethat they're including there.
So that's at 1.24.59.
Around 1.26.02, so about aminute later, a minute and three
seconds later, the VDR resumedrecording ship system data.
(25:35):
During this time there weresteering commands and rudder
orders on the VDR audio.
Around 1.26 and 39 seconds, theship's pilot made a general VHF
radio call for tugs in thevicinity of the Dolly Maryland
Transportation Authority.
Mdta data from around this timeindicated the pilot association
(25:58):
dispatcher phoned the MTDA dutyofficer regarding the blackout.
So at 1.26 and 39 seconds, thepilot association dispatcher
phoned the transportationauthority duty officer regarding
the blackout, which was, Ithink, one of the smartest
(26:18):
things that could have happened,because this is connecting the
maritime transportation piece tothe surface transportation
piece and that's kind of whatthis whole podcast is based on
is bridging the silos betweenmaritimes transportation and
surface transportation and thereare some notable disconnects,
(26:41):
but in that moment to me itseems like they were connecting
those dots.
And so the surfacetransportation side I mean of
course the bridge, right, ofcourse the bridge has surface
transportation implications, butthat moment started the chain
of the surface transportationside to secure and protect that
bridge.
So 126, 39 seconds, so 127.04,so about 40 seconds.
(27:06):
No, what's that?
Yeah, 25 seconds later sorrymath, 25 seconds or so later,
the pilot commanded the dally todrop the port anchor and issued
additional steering commands.
So at this point right, theydropped the port anchor.
We've seen that from some ofthe helicopter footage and, if
you, if you listen to Dr SalMcCrogliano, he talked about
that too.
From the initial helicopterfootage that he saw, the port
(27:28):
anchor was a stern or waspointing a stern anchor was a
stern or was pointing a stern.
Around 1.27 and 25 seconds thepilot issued a radio call over
the VHF radio and reported thatDolly had lost all power
approaching the key bridgeAround.
This time MDTA data shows thefollowing occurred that the
Maryland TransportationAuthority duty officer radios
(27:49):
two units already, one on eachside of the bridge, to close the
bridge.
That's the piece that savedlives.
There were duty officersalready around and there was
actually some released audio soyou can listen to the exchange.
That wasn't included in part ofthis NTSB reporting or release,
but they said that at 127.25,.
(28:10):
So at 126.39 is when they'resaying that the pilot
association dispatcher phonedover to the Maryland
Transportation Authority andabout a minute later the
Maryland TransportationAuthority said that they were
radioing to two officers to shutdown the bridge a minute later
(28:32):
and then all lanes are shut downby MTDA, mdta.
So if you go to this articleand, like I said, I'm putting
all the articles in the shownotes, like I always do, but
they have the audio of thedispatch to the two patrol units
there too.
It's really interesting.
It wasn't included in the NTSBtimeline but it is there in the
article.
It wasn't included in the NTSBtimeline, but it is there in the
article.
(28:53):
So around 1.29, the ship's speedover ground was recorded at
just under seven knots, eightmiles per hour.
So they had slowed down aboutone mile per hour.
But this was a huge vessel.
So from this moment untilapproximately 1.29.33, vr audio
recorded sounds consistent withthe collision, with, I should
say, elision with the Key Bridge.
(29:13):
Additionally, around this timeMaryland Transportation
Authority dash camera shows thebridge lights extinguishing.
So 1-29.
So 1-27-25 is when they wereable to shut down the bridge.
According to this NTSB timeline, they did that with about 95
(29:34):
seconds to spare.
Well, and maybe even twominutes to spare, because from
this moment until approximately1-29-33.
So I mean 90 seconds to sparereally is what we're looking at
here, that they were able to soquickly go from maritime to
surface transportation, shutdown that bridge.
(29:56):
At 1.29.39, the pilot reportedthat the key bridge was down
over VHF to the US Coast Guard.
So this is from the NTSB reportof the timeline.
Like I said, I don't want to gotoo far away from what the truth
is here and so that's what isbeing reported as the truth.
That's the timeline.
(30:17):
If you do pull up the article,like I said, there is audio from
dispatch discussing holding oftraffic and at one point it
sounds like one of the policeofficers who was stopping the
traffic was then going to go upand retrieve the workers and
before he was able to do so thebridge collapsed and, like I
said, that was in the dispatchaudio that the article includes.
So what I want to say on thisis, in the few precious minutes
(30:43):
I mean really seconds that thepolice officers had, they truly
saved untold number of lives bystopping traffic on that bridge.
It was the middle of the night,it was 1.30 in the morning,
essentially, but how quicklyword got from the bridge of the
vessel to the police officers tostop that bridge, stop all
traffic on the bridge.
(31:04):
The connection between maritimetraffic and the surface
transportation, vehiculartraffic I mean that is
phenomenally fast, that is great, and I really, really think
that all regional areas that arehaving those conversations this
week about vulnerabilities intheir own critical
(31:26):
infrastructure should be reallyreviewing how quickly can
maritime conversations translateinto surface transportations or
surface conversations?
Because the fact that thishappened in I mean right, it's
from walking through itcollectively just now about 90
seconds is mind-blowing.
(31:47):
So love to see it, love to seethat.
That's how fast that happened.
And just add, added to yourconversation.
Right, this is not legal advice, this is just kind of
responding to, like I said, thetruth that we see here.
That's been kind of a questionon my mind is like what are the
(32:14):
vessels that actually nowindefinitely can't get out until
we kind of move the and securethe channel so that it can open
up again?
So in this article Mike Shuler'sarticle from G Captain, he says
, according to the Department ofTransportation, there are three
bolt carriers, two generalcargo ships, one vehicle carrier
, one tanker and four readyreserve force vessels.
And now the container shipDolly is also back there and
(32:38):
what I've been hearing is thatthey're going to be, once they
are able to, they're going to bemoving the Dolly back over to
berth and doing theirinvestigation there.
So what Mike Shuler says inthis G Captain article is that
they're using AIS data and thepublic ship databases, they've
been able to locate details oneach of those vessels.
So the three bulk carriersinclude the Liberian, flagged JY
(33:01):
River, owned by JADInternational Ship and managed
by a Hong Kong company.
There's a Thailand flagged,that is also back there.
There's a Portuguese flagged uhvessel.
That is also.
So those three are the threebolt carriers.
(33:22):
Um, there's a vehicle carrier,the Swedish flag, carmen um, of
Wallenius Marine.
There's a general cargo ship.
There's a French flag flaggedvessel Um.
There's a Panamanian flaggedvessel and the tanker, the
Martian, the Marshall islands,flagged uh vessel, um.
And then there's three Maradready reserve force vessels.
(33:44):
We haven't talked a lot, we'renot going to veer too much into
ready reserve force vessels uhright now, but this um in
general needs to be built up,but there's three that are stuck
back there.
So the Cape Washington, a Rorovessel, the Gary Gordon, a Roro
vessel.
The SS Antares, a fast seal ofvehicle cargo ship.
(34:05):
And the SS Denebola, a fastseal of vehicle cargo ship.
So, as Mike explains in in thearticle and I'm just going to
read what he put here the redreserve force, rrf, is a subset
of vessels within meritsnational defense reserve fleet
and DRF that provides surge seallift capability to the
(34:25):
department of defense.
The ships are owned, crude andmaintained by merit but come
under the control of themilitary seal of command once
activated.
And he also in the reports thatthere's countless tugs and
smaller vessels back there.
I mean, they're stuck right, sothere's no possibility for
departure because there's no wayto get through.
And even if there was, it's toounsafe to do so, so they're
(34:49):
going to be stuck there for alittle bit.
But it was interesting to seethe reporting of the vessels,
their names and their purpose.
So I also want to call yourattention to an article out of
JOC by William Cassidy, and hediscusses the cargo diversion
and trucking troubles that maybe coming from this.
And while I want to be carefulhere, because I do not want to
(35:11):
predict doom and gloom, becauseI don't think that that's
something that will be happeninghere, I do think that it's
important to kind of talk aboutmaybe some of the cargo
diversion that might behappening and some of the
knock-on effects that you shouldjust pay attention to.
I don't want to say thatthere's doom and gloom coming
and I don't want to imply thatthere's doom and gloom coming,
but there are some challengesthat I think are now going to be
(35:33):
presented that need to be builtinto everybody's contingency
plans and everybody's justlarger thinking on all of this.
So the surrounding ports of NewYork, new Jersey and Norfolk
both ports I've been reading andhearing um have been assisting
with the cargo diversion ofvessels and their containers.
Um and, like I said, there'sgoing to probably be some
knock-on effects here that aregoing to need to be managed.
(35:53):
So this is not sounding analarm, just indicating that
there's some nimbleness of thesupply chain that's going to be
put on display and some thingsthat you should be paying
attention to.
So in this article out of JOC byWilliam Cassidy, he does an
interview with Ken Kelleway, ceoof RoadOne Intermodal Logistics
, and Ken says a lot of peopletake drayage capacity for
(36:14):
granted and that's an importantpiece.
He said they think it'sfungible from one port to
another, but it's not.
And so that was one of mythoughts was, even though the
ports are likely able to handlewhat's happening with this cargo
diversion right, I mean theywere able to handle some surging
that happened during COVID andcertainly we don't have the
(36:34):
global system disruptions thatwe have.
This is East Coast Limited.
It's not just about the portright, it's all about connecting
the pieces and it's about thedrayage trucking providers that
are moving those containers outof the port and moving them over
to the warehouse.
And then you get to thewarehouse discussion Is there
enough capacity in the warehouse?
(36:55):
Are those warehouses dedicatedand able to handle the commodity
, the type of cargo that isbeing offloaded?
Or the Port of Baltimore hasappropriately and importantly
mentioned and put out there thatthey're still open, even though
they don't have an ingressegress for their maritime side
of there, that they're stillopen even though they don't have
an ingress egress for theirmaritime side of things, they're
(37:16):
still open.
And so it's been reallyencouraging to see a lot of
attempts to bring the cargo backto Port of Baltimore, one
because of the kind of show ofstrength and show of support for
the Port of Baltimore, but thenalso I think that it's showing
(37:37):
that Baltimore is still open andthis Port of Baltimore
specifically was created.
Some of these warehousing unitsare created for the specific
commodities that Baltimore isgood at, and so what Ken
Kellaway of Road 1 IntermodalLogistics continues on saying is
the average dray out ofBaltimore is probably 50 to 60
(38:00):
miles, which dray is theconnector of port to where it
needs to go, but if you'redraying from New York to that
same location you could add 100miles, from Norfolk, another 150
.
So he says that these are justthings that need to be
considered and I've heard bothof DRAGE trucking providers and
also of rail being a possibilityinto the Port of Baltimore port
(38:25):
system.
So, as the article continues onand says, east Coast ports have
had enough capacity to handlediverted cargo, but whether
truck capacity is available oncethat cargo is offloaded is
another matter and that's kindof the point that I was making
at the beginning here.
Another thing that is just goodgeneral practice right to
review your shipping contracts,whatever that looks like for you
(38:48):
and again, this is not legaladvice, but this is not legal
advice directly related to yourmatter, but this is certainly
just good best practices to makesure that you're up on all of
your own terms and make surethat you're prepared.
I don't anticipate a ton ofcongestion from this cargo
diversion right and I think thatit's going to be well-managed
and quickly managed, because alot of people sprang into action
(39:10):
to make sure that we weren'tgoing to have much of a
large-scale economic disruptionhere.
But slowdowns in the system cansometimes mean detention or
demurrage may rear their heads,and we talk about detention
demurrage a lot here.
One thing that I want to pointout is the final rule out of the
FMC, the detention demurragefinal rule, doesn't go into
(39:34):
effect until May 28th.
We are now March 29th, whichmeans the D&D final rule from
the FMC is not effective yet.
So some of the things that arebecoming part of the
requirements are not yetnecessarily requirements, and so
just be aware of that.
Not legal advice directlyrelated to your matter, but just
(39:56):
so that you don't forget, eventhough the final text has been
released, it is not effectiveyet.
But I also want you to just belooking at detention to merge.
I want you to be understandingwhat your free time timelines
look like for you If appropriate.
I mean, maybe you could findout if free time can be extended
, or there's just my point beingright not legal advice, but
(40:24):
just start thinking about all ofyour terms and understanding it
, because it'll make you moreprepared, obviously, but it'll
also make you more prepared tobe nimble if required If things
do start to gum up or if thereare some problems of moving the
cargo out of these new areas.
So just know the parametersthat you're working with, not
legal advice, just general goodpractices, just general thoughts
(40:46):
, and there's going to be a lotthat's going to be unfolding in
the next few weeks.
I mean, certainly there's beena lot that's unfolded in the
past few days, but this issomething that it's important to
just be aware.
Keep your eyes open, keeppaying attention here and, as
always, the guidance here isgeneral and for educational
(41:07):
purposes.
I'm going to continue to bewatching all things ocean
surface, anything related to theglobal ocean shipping
environment in the world.
It should not be contributinglegal advice, though directly
related to your matter.
If you need an attorney,contact an attorney, but if you
do have specific legal questions, feel free to reach out to me
at my legal company, squallStrategies.
Otherwise, that's it for today.
(41:28):
For the non-legal questions,e-learning and general industry
information and insight, comefind me at the Maritime
Professor.
If you like these videos, letme know, comment, like and share
.
If you want to listen to theseepisodes on demand or if you
missed any previous episodes,check out the podcast by Land
and by Sea.
If you prefer to see the video,they live on my YouTube page by
Land and by Sea, presented bythe Maritime Professor, and,
(41:49):
while you're at it, check outthe website maritimeprofessorcom
.
So until next week.
This is Lauren Began, maritimeProfessor, and you've just
listened to.
By Land and by Sea.
See you next time.
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